Insurance (Tables)

3 Months Ended

Mar. 31, 2018

Information regarding the Company’s guarantee exposure, which includes direct and assumed business, but excludes offsets from hedging or ceded reinsurance, if any, was as follows at:



	March 31, 2018								December 31, 2017
	In the Event of Death				At Annuitization				In the Event of Death				At Annuitization
	(Dollars in millions)
Annuity Contracts:
Variable Annuity Guarantees:
Total account value (1), (2), (3)	$	64,728			$	25,169			$	66,724			$	26,223
Separate account value (1)	$	43,714			$	23,302			$	45,431			$	24,336
Net amount at risk (2)	$	1,587	(4	)	$	510	(5	)	$	1,238	(4	)	$	525	(5	)
Average attained age of contractholders	66 years				66 years				65 years				65 years
Other Annuity Guarantees:
Total account value (1), (3)	N/A				$	1,437			N/A				$	1,424
Net amount at risk	N/A				$	559	(6	)	N/A				$	569	(6	)
Average attained age of contractholders	N/A				50 years				N/A				50 years



	March 31, 2018				December 31, 2017
	Secondary Guarantees		Paid-Up Guarantees		Secondary Guarantees		Paid-Up Guarantees
	(Dollars in millions)
Universal and Variable Life Contracts:
Total account value (1), (3)	$	9,089	$	3,171	$	9,036	$	3,207
Net amount at risk (7)	$	66,762	$	16,332	$	66,956	$	16,615
Average attained age of policyholders	57 years		63 years		56 years		63 years

__________________


(1)	The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive.


(2)	Includes amounts, which are not reported on the interim condensed consolidated balance sheets, from assumed variable annuity guarantees from the Company’s former operating joint venture in Japan.


(3)	Includes the contractholder’s investments in the general account and separate account, if applicable.


(4)	Defined as the death benefit less the total account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death.

(5)

Defined as the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved.

(6)

Defined as either the excess of the upper tier, adjusted for a profit margin, less the lower tier, as of the balance sheet date or the amount (if any) that would be required to be added to the total account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. These amounts represent the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date.


(7)	Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date.

Liabilities for Unpaid Claims and Claim Expenses

Rollforward of Claims and Claim Adjustment Expenses

Information regarding the liabilities for unpaid claims and claim adjustment expenses was as follows:



	Three Months Ended March 31,
	2018			2017 (1)
	(In millions)
Balance, beginning of period	$	17,094		$	16,157
Less: Reinsurance recoverables	2,198			1,968
Net balance, beginning of period	14,896			14,189
Incurred related to:
Current period	6,504			6,637
Prior periods (2)	(148		)	(127		)
Total incurred	6,356			6,510
Paid related to:
Current period	(3,339		)	(3,723		)
Prior periods	(2,719		)	(2,604		)
Total paid	(6,058		)	(6,327		)
Net balance, end of period	15,194			14,372
Add: Reinsurance recoverables	2,237			2,123
Balance, end of period (included in future policy benefits and other policy-related balances)	$	17,431		$	16,495

__________________

(1)

As discussed in Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report, at December 31, 2016, the Net balance decreased and the Reinsurance recoverables increased from those amounts previously reported. Additionally, at March 31, 2017, the Net balance decreased by $131 million and the Reinsurance recoverables increased by $144 million from those amounts previously reported in MetLife, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017. These adjustments to the Net balance and the Reinsurance recoverables, at both periods, are primarily to correct for improper classification of reinsurance recoverables.


(2)	During both the three months ended March 31, 2018 and 2017, as a result of changes in estimates of insured events in the respective prior periods, the claims and claim adjustment expenses associated with prior periods decreased due to favorable claims experience.